Nonperforming Loans in Asia: Issues and Challenges
The presentation highlighted the key issues and challenges in tackling non-performing loans (NPLs) in Asia. One of the key issues is that there are feedback effects between NPLs and macroeconomic indicators which are transmitted through various channels of financial spillovers across borders. Hence, economies have been focused on developing effective NPL resolution frameworks to facilitate NPL disposal. However, impediments to NPL resolution remain on the demand-side, supply-side, and structural challenges. The speaker also noted that ADB plays an active role in developing the finance sector, strengthening the banking system, and addressing the NPL problem in developing member countries.